DoorDash Cutting 1,250 Corporate Jobs as Demand Slows

Grappling with a slowdown in demand and high operating expenses, DoorDash announced a significant reduction to its corporate headcount.

The food delivery company is cutting approximately 1,250 jobs in a bid to reduce costs.

In a memo to staff on Nov. 30, DoorDash co-founder and CEO Tony Xu said the COVID-19 pandemic “presented sudden and unprecedented opportunities to serve the evolving needs of merchants, consumers and Dashers.”

“Our business has been more resilient than other [e-commerce] companies, but we too are not immune to the external challenges and growth has tapered [versus] our pandemic growth rates,” Xu noted.

“While our business continues to grow fast, given how quickly we hired, our operating expenses – if left unabated – would continue to outgrow our revenue.”

Impact in Canada

In a statement to CBC News, DoorDash confirmed that “some of the affected employees are based in Canada.”

However, the company didn’t disclose the specific number of Canadian workers that are being let go during the latest round of cuts.

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